SHS Economics Unit 1

 Mutual dependence of the economic activities of one person/comp./reg./nation on those of another person/comp./reg./nat.

Comparison of the cost of an action to its benefits

Basic requirement for survival, including food, clothing, and shelter

 Good intended for final use by consumers other than businesses

Diagram showing maximum combinations of goods /services an economy can produce when all productive resources are used

Alternative that must be given up when one choice is made rather than another

Measure of the amount of output produced in a specific time period with a given amount of resources

GDP stands for?

 Problem facing all societies resulting from a combination of scarce resources and people’s virtually unlimited wants

Wealth is the accumulation of goods that are intangible (can't be touched)

Good that lasts for at least three years when used regularly

Cost of the next best alternative use of money, time, or resources when one choice is made rather than another

Quality of life based on ownership of necessities and luxuries that make life easier

Tangible economic product that is useful, transferable to others, and used to satisfy wants and needs

Increase in a nation’s total output of goods and services over time

Ability or capacity of a good or service to be useful and give satisfaction to someone

Meeting place/arrangement through which buyers and sellers interact to determine price & quantity of an economic product

Value is the monetary worth of a good or service as determined by the government

Monetary value of all final goods, services, and structures produced within a country during a one-year period

Paradox of value is the contradiction between the high value of essential items and the low value of nonessential items

Tool, equipment, or other manufactured good used to produce other goods and services; a factor of production

Deals with how people satisfy seemingly unlimited and competing needs and wants with the careful use of scarce resources

Sum of people’s skills, abilities, health, and motivation

Something we would like to have but is not necessary for survival

Factor markets are markets in which goods and services are bought and sold

Item that wears out, is used up, or lasts for fewer than three years when used regularly

Division of work into a number of separate tasks to be performed by different workers; same as specialization

Work or labor performed for someone; economic product that includes haircuts, home repairs, and forms of entertainment